Judge Places Time Limit On Penalties In $550M Wyly Case

Law360, New York (June 6, 2013, 7:46 PM EDT) -- A New York federal judge on Thursday ruled that the U.S. Securities and Exchange Commission is time-barred from pursuing certain penalty claims against billionaire Samuel E. Wyly, his deceased brother and others in a suit alleging they ran a $550 million securities fraud scheme.

U.S. District Judge Shira A. Scheindlin said the SEC was time-barred from pursuing penalty claims for alleged fraud and insider trading occurring more than five years prior to the execution of the Wylys' 2006 tolling agreement with the agency.